After a seemingly never-ending process, Micron (U.S.) and Hynix (Korea) have agreed to a US$3.x billion deal where Micron will purchase the DRAM fabs from Hynix in exchange for Micron stock, and Micron will also make an investment of $200 million in the remaining chunks of Hynix and take a 15% stake. I say $3.x billion because the number is listed as $3.2 billion, $3.4 billion, and $3.8 billion at different sources. Aw, what's a few hundred million dollars between friends? In any case, Micron and Hynix have signed a memorandum of understanding (MOU) and the deal still has to be approved by Hynix creditors, the boards of Micron and Hynix, and then regulatory officials in various places. So, if the purchase of Hynix fabs puts Micron/Crucial in control of 40% of the DRAM fabs on the planet, is that enough for worries about monopoly power? It's certainly more worrisome than when there were two 20% DRAM shareholders. Micron already purchased Toshiba's (Japan) DRAM fabs earlier this year. Assuming this deal goes through, the biggest competitors left will be Samsung (Korea) and Infineon (Germany). The worldwide battle for DRAM supremacy continues.

USER COMMENTS 4 comment(s)

Speaking of Micron(2:41pm EST Mon Apr 22 2002)That earthquake in Northeastern US hit fairly close to home (I live less then 1.5 hours away). I think they are on to me knowing about their doomsday device that causes earthquakes and typhoons in order to drive up RAM prices. How else does a 5.1 earthquake happen in North Eastern New York State.

I may have to lay low for a few months. - by – -

- -(4:50pm EST Mon Apr 22 2002)Har har har…

“I may have to lay low for a few months.”

Yeah, that would be cool because then we wouldn't have to read your idiotic posts. - by

Luckily we still have Infineon, Samsung and Nanya to undercut Micron(4:25am EST Tue Apr 23 2002)Micron DIMMS aka Crucial are way overpriced. - by NoM$KissAss